CP Rail slams NS over ‘mischaracterization’ of takeover offer

December 7, 2015

By Ross Marowits, The Canadian Press in The Province

MONTREAL – A proposal by Canadian Pacific Railway to create the largest railroad in North America took a testy turn Friday after the company accused Norfolk Southern of mischaracterizing the takeover deal.Website Insert Coach Business Class Food Service copy

The Calgary-based railway said it was disappointed that Norfolk Southern, one of the biggest rail companies in the U.S., rejected its US$28 billion offer.

“CP takes exception to the claims, misdirection and mischaracterization of its offer and the benefits such a combination would provide to customers, shareholders, the industry and the public,” CP Rail said after markets closed.

CP Rail plans to hold a conference call Tuesday to respond in greater detail and “correct every inaccuracy” raised by Norfolk Southern about obtaining regulatory approval.

Norfolk expressed doubt that the deal would clear regulatory hurdles in dismissing the unsolicited offer on Friday. The Virginia-based railway also called the offer “grossly inadequate.”

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